[Sponsored Report] Shinhan launches ISA enhancement services

In celebration of its new individual savings account (ISA), Shinhan Investment is currently holding an ISA subscription event that offers the first 10,000 clients coupons for a 5 percent repurchase agreement. The limited offer lasts until June 30. [SHINHAN INVESTMENT]

Shinhan Investment, a securities brokerage and investment banking subsidiary of Shinhan Financial Group, has prepared various new services in time for the launch of its individual savings account (ISA).

These services include the company’s ISA Trust, which allows clients to determine the asset allocation of their investments, and ISA Wrap, which manages clients’ returns on investment via diversification, rebalancing and portfolio recommendations.

Shinhan Investment’s ISA Trust gives clients control over the composition of their portfolios. Once a set of savings, funds or equities has been chosen, clients are free to determine the weight of each asset. The company recommends that investors willing to take more risks for greater returns place more weight on assets with high expected returns on investment, such as equity-linked securities.

Those who prioritize security, on the other hand, are advised to build savings-based investment portfolios. Should clients decide to take a break from investing, ISA Trust will keep their investments safe by converting them into cash assets, the lowest-risk option available.

ISA Wrap, on the other hand, is a comprehensive service encompassing portfolio construction, management and maintenance. Under the service, a board of highly qualified product strategists creates customized portfolios based on clients’ investment patterns and market conditions. By calculating commissions based on the risk level of each portfolio, the ISA Wrap account also aims to simplify its cost structure and charge lower commissions.

ISA Wrap offers a total of six model portfolios, which are categorized into three levels: high risk, medium risk and low risk. While the portfolios at each level vary in asset allocation, they all come in two types - active and passive. Clients can choose a portfolio type depending on how aggressive they want their investment strategy to be. Active portfolios exploit market inefficiencies through the purchasing and short selling of securities, while passive ones track a market-weighted index.

Private bankers are also available to provide one-on-one consulting services to clients who want to further customize their investments.

According to Lee Jae-shin, head of Shinhan Investment’s Wrap Management Department, the company “will do its best to create ISA services that maximize returns on investment by charging reasonable commissions and offering portfolios that adapt to evolving market conditions.”

BY PARK HYE-MI [park.hyemi@joongang.co.kr]